Taiwo said as long as we have so much naira liquidity outside banking sector, the dollar as a more stable store of value will be in high demand
By Kehinde Okeowo
Nigeria’s apex bank, the Central Bank of Nigeria (CBN) announced on Wednesday that Federal Executive Council (FEC) has approved the withdrawal of N200, N500 and N1000 notes from circulation with immediate effect and that they would be replaced with newer notes from December 15.
The CBN governor, Godwin Emefiele, also said the old notes would cease to be legal tender from January 31, 2023, adding that Buhari will launch the new Naira notes.
This policy has since generated mixed reactions among Nigerians with the Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed, distancing herself from the redesigning of the Naira notes.
ALSO READ: Naira: CBN to change N200, N500 and N1000 notes effective December 15
However, 6 years before the development was announced by the CBN, a Nigerian chartered accountant, Oludare Taiwo had advised President Buhari to embark on redesigning the Naira notes to strengthen the Naira.
Taiwo, while writing an opinion titled ‘Salvaging the naira’ in Punch in 2016, argued that if this policy was introduced, the problem associated with sliding naira in the parallel market will be solved to a large extent.
He said, “When will President Muhammadu Buhari be bold enough to change the colours of the naira notes? The problem of the sliding naira in the parallel market will be one-quarter solved.”
The financial expert went on to assert that when the CBN redesigns the Naira notes and gives limited time for Nigerians to move their Naira stocks into the banking industry in exchange for the new notes, excess money in circulation will be mopped up.
He also stated that as long as we have so much naira liquidity outside the banking sector, the dollar as a more stable store of value will be in high demand, leaving room for corrupt elements to profit.
“When you change the colours of the naira, give limited time for Nigerians to move their naira stocks into the banking industry in exchange for the new notes and let the Anti-Money Laundering Reports, Nigerian Financial Intelligence Unit and the Economic and Financial Crimes Commission handle the rest.
“After this, remove administrative controls over exchange rate and float the rate of the Naira. Let it find its level.
“As long as we have so much naira liquidity outside the banking sector, the dollar as a more stable store of value will be in high demand.
“Let us salvage the value of the naira and kill corruption with one stone,” Taiwo added.
